TAX INCENTIVES
Whilst the further reduction to Employees NIC is part of a wider strategy to encourage people back to work will be welcomed by individuals, it wont change the costs for business owners.
In fact, with national minimum wage jumping up 9.8% on 1st April, costs of employing people are still set to rise. Business owners will be stuck between taking a cut on margins, stretching current resources further, or will experience a rise in prices.
GREEN TECH
There is a general move to a higher skilled, higher wage economy and support for research and manufacturing of future vehicles which could impact the T&L sector.
Freeport Tax Reliefs
There was confirmation of the extension to Freeport tax reliefs, as announced in the Autumn Statement 2023. The window to claim the tax reliefs available in Freeport special tax sites is extended from 5 to 10 years. The sunset dates will be extended to:
- 30 September 2031 for special tax sites in respect of English Freeports
- 30 September 2034 for special tax sites in respect of Scottish Green Freeports and Welsh Freeports
Air Passenger Duty will be increased for non-economy passengers.
FUEL DUTY
The Chancellor has confirmed the decision to keep the current fuel duty rates unchanged for the next year. Moreover, during his Spring Budget speech, Jeremy Hunt announced the extension of the temporary 5p reduction on fuel duty, originally set to expire this month.